2022 Q1 Form 10-Q Financial Statement

#000143774922011339 Filed on May 06, 2022

View on sec.gov

Income Statement

Concept 2022 Q1 2021 Q1
Revenue $26.12M $21.92M
YoY Change 19.2% 49.4%
Cost Of Revenue $5.183M $4.667M
YoY Change 11.06%
Gross Profit $20.94M $17.25M
YoY Change 21.41%
Gross Profit Margin 80.16% 78.7%
Selling, General & Admin $13.88M $13.97M
YoY Change -0.66% 16.42%
% of Gross Profit 66.28% 80.99%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $800.0K $1.100M
YoY Change -27.27% 15.06%
% of Gross Profit 3.82% 6.38%
Operating Expenses $25.32M $21.09M
YoY Change 20.06% 29.48%
Operating Profit $799.0K $822.0K
YoY Change -2.8% -150.68%
Interest Expense -$2.319M $1.552M
YoY Change -249.42% -27.91%
% of Operating Profit -290.24% 188.81%
Other Income/Expense, Net $224.0K $107.0K
YoY Change 109.35% -103.53%
Pretax Income -$2.913M $474.0K
YoY Change -714.56% -312.56%
Income Tax -$409.0K -$425.0K
% Of Pretax Income -89.66%
Net Earnings -$2.504M $899.0K
YoY Change -378.53% -328.75%
Net Earnings / Revenue -9.59% 4.1%
Basic Earnings Per Share -$0.12 $0.02
Diluted Earnings Per Share -$0.12 $0.02
COMMON SHARES
Basic Shares Outstanding 22.88M 22.22M
Diluted Shares Outstanding 22.88M 22.22M

Balance Sheet

Concept 2022 Q1 2021 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments
YoY Change
Cash & Equivalents $13.10M $15.50M
Short-Term Investments
Other Short-Term Assets
YoY Change
Inventory
Prepaid Expenses
Receivables
Other Receivables
Total Short-Term Assets $22.20M $23.15M
YoY Change -4.13% 54.33%
LONG-TERM ASSETS
Property, Plant & Equipment $107.9M $94.19M
YoY Change 14.51% -3.9%
Goodwill $110.2M $121.3M
YoY Change -9.1% 47.72%
Intangibles $106.7M $83.64M
YoY Change 27.6% -2.58%
Long-Term Investments $57.98M $45.52M
YoY Change 27.37% -16.94%
Other Assets $28.64M $38.39M
YoY Change -25.4% 44.3%
Total Long-Term Assets $452.4M $416.7M
YoY Change 8.57% 9.62%
TOTAL ASSETS
Total Short-Term Assets $22.20M $23.15M
Total Long-Term Assets $452.4M $416.7M
Total Assets $474.6M $439.8M
YoY Change 7.9% 11.32%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable
YoY Change
Accrued Expenses $54.32M $45.72M
YoY Change 18.81% 48.94%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $54.74M $48.87M
YoY Change 12.01% 45.87%
LONG-TERM LIABILITIES
Long-Term Debt $290.0M $257.0M
YoY Change 12.84% 5.99%
Other Long-Term Liabilities $89.88M $86.87M
YoY Change 3.46% 54.57%
Total Long-Term Liabilities $379.9M $343.9M
YoY Change 10.47% 15.13%
TOTAL LIABILITIES
Total Short-Term Liabilities $54.74M $48.87M
Total Long-Term Liabilities $379.9M $343.9M
Total Liabilities $462.7M $421.2M
YoY Change 9.85% 16.02%
SHAREHOLDERS EQUITY
Retained Earnings -$397.8M -$394.2M
YoY Change 0.92% 1.28%
Common Stock $0.00 $0.00
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost) $492.0K $492.0K
YoY Change 0.0% 0.0%
Treasury Stock Shares $247.5K 247.5K shares
Shareholders Equity -$8.334M -$2.381M
YoY Change
Total Liabilities & Shareholders Equity $474.6M $439.8M
YoY Change 7.9% 11.32%

Cashflow Statement

Concept 2022 Q1 2021 Q1
OPERATING ACTIVITIES
Net Income -$2.504M $899.0K
YoY Change -378.53% -328.75%
Depreciation, Depletion And Amortization $800.0K $1.100M
YoY Change -27.27% 15.06%
Cash From Operating Activities $3.841M -$1.869M
YoY Change -305.51% -404.89%
INVESTING ACTIVITIES
Capital Expenditures $112.0K $228.0K
YoY Change -50.88%
Acquisitions $83.00K $50.00K
YoY Change 66.0%
Other Investing Activities -$26.00K -$17.00K
YoY Change 52.94% -71.67%
Cash From Investing Activities -$187.0K $13.49M
YoY Change -101.39% 83.99%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -$3.818M -$11.54M
YoY Change -66.9% 587.02%
NET CHANGE
Cash From Operating Activities $3.841M -$1.869M
Cash From Investing Activities -$187.0K $13.49M
Cash From Financing Activities -$3.818M -$11.54M
Net Change In Cash -$164.0K $86.00K
YoY Change -290.7% -98.63%
FREE CASH FLOW
Cash From Operating Activities $3.841M -$1.869M
Capital Expenditures $112.0K $228.0K
Free Cash Flow $3.729M -$2.097M
YoY Change -277.83% -442.09%

Facts In Submission

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CY2021Q1 us-gaap Other Operating Activities Cash Flow Statement
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CY2021Q1 kfs Payments For Proceeds From Limited Liability Investments At Fair Value
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200000 USD
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200000 USD
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18800000 USD
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0 USD
CY2021Q1 us-gaap Equity Securities Without Readily Determinable Fair Value Impairment Loss Annual Amount
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100000 USD
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CY2021Q1 us-gaap Investment Income Dividend
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CY2021Q1 us-gaap Net Cash Provided By Used In Financing Activities
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CY2021Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
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CY2021Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2022Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2021Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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45031000 USD
CY2022Q1 us-gaap Nature Of Operations
NatureOfOperations
<table border="0" cellpadding="0" cellspacing="0" style="font-family: Times New Roman; font-size: 10pt; width: 100%;"><tbody><tr><td colspan="9" style="border-bottom:solid 1px #000000;vertical-align:bottom;width:auto;"> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><b><a href="#" id="Notes" title="Notes"/></b></p></td></tr> </tbody></table><p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"/> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"><b>NOTE <em style="font: inherit;">1</em> BUSINESS </b></p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;">Kingsway Financial Services Inc. (the "Company" or "Kingsway") was incorporated under the Business Corporations Act (Ontario) on <em style="font: inherit;"> September 19, 1989. </em>Effective <em style="font: inherit;"> December 31, 2018 </em>the Company changed its jurisdiction of incorporation from the province of Ontario, Canada, to the State of Delaware. Kingsway is a holding company with operating subsidiaries located in the United States. The Company owns or controls subsidiaries primarily in the extended warranty, business services, asset management and real estate industries.</p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;"> </p>
CY2022Q1 us-gaap Basis Of Accounting
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<p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;"><b>NOTE <em style="font: inherit;">2</em> BASIS OF PRESENTATION</b></p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;"> </p> <p style="font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">The accompanying unaudited consolidated interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information and with the instructions to Form <em style="font: inherit;">10</em>-Q and Article <em style="font: inherit;">10</em> of Regulation S-<em style="font: inherit;">X.</em> Accordingly, they do <em style="font: inherit;">not</em> include all of the information and notes required by U.S. GAAP for complete financial statements of the Company. In the opinion of management, all adjustments necessary for a fair presentation have been included and are of a normal recurring nature. Interim results are <em style="font: inherit;">not</em> necessarily indicative of the results that <em style="font: inherit;"> may </em>be expected for the year.</p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;"> </p> <p style="font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">The accompanying unaudited consolidated interim financial statements and footnotes should be read in conjunction with the audited consolidated financial statements and footnotes included within our Annual Report on Form <em style="font: inherit;">10</em>-K ("<em style="font: inherit;">2021</em> Annual Report") for the year ended <em style="font: inherit;"> December 31, 2021</em>.</p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;"> </p> <p style="font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">The unaudited consolidated interim financial statements include the accounts of the Company and its subsidiaries, as well as certain variable interest entities as further described in Note <em style="font: inherit;">5,</em> "Variable Interest Entities," to the consolidated financial statements in the <em style="font: inherit;">2021</em> Annual Report. All material intercompany transactions and balances have been eliminated in consolidation.</p> <p style="font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;"> </p> <p style="font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;"><span style="background-color:#ffffff;">Certain amounts in the unaudited consolidated interim financial statements as of and for the </span><em style="font: inherit;">three</em> months ended <em style="font: inherit;"> March 31, 2021</em><span style="background-color:#ffffff;"> have been reclassified in order to conform to the </span><em style="font: inherit;">2022</em><span style="background-color:#ffffff;"> presentation.</span></p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;"> </p> <p style="font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt;">The preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts and classifications of assets and liabilities, revenues and expenses, and the related disclosures of contingent assets and liabilities in the consolidated financial statements and accompanying notes. Actual results could differ from these estimates. Estimates and their underlying assumptions are reviewed on an ongoing basis. Changes in estimates are recorded in the accounting period in which they are determined.</p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;">The critical accounting estimates and assumptions in the accompanying unaudited consolidated interim financial statements include the valuation of fixed maturities and equity investments; impairment assessment of investments; valuation of limited liability investments, at fair value; valuation of real estate investments; valuation of deferred income taxes; accounting for business combinations and asset acquisitions; valuation and impairment assessment of intangible assets; goodwill recoverability<span style="background-color:#ffffff;">; deferred contract costs;</span> fair value assumptions for subordinated debt obligations; fair value assumptions for subsidiary stock-based compensation awards; contingent consideration and revenue recognition.</p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;">The fair values of the Company's investments in fixed maturities and equity investments, limited liability investments, at fair value, real estate investments, subordinated debt, stock-based compensation liabilities, derivative contracts and contingent consideration are estimated using a fair value hierarchy to categorize the inputs it uses in valuation techniques. Fair values for other investments approximate their unpaid principal balance. The carrying amounts reported in the consolidated balance sheets approximate fair values for cash and cash equivalents, restricted cash, short-term investments and certain other assets and other liabilities because of their short-term nature.</p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;"> </p>
CY2022Q1 kfs Percentage Of Proceeds From Increased Rental Payments
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CY2022Q1 us-gaap Temporary Equity Aggregate Amount Of Redemption Requirement
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15000 USD
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1404000 USD
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35150000 USD
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619000 USD
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421000 USD
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59000 USD
CY2021Q1 kfs Realized Investment Gains
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51000 USD
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5000 USD
CY2021Q1 kfs Realized Investment Losses
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CY2021Q1 us-gaap Realized Investment Gains Losses
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CY2022Q1 kfs Gain Loss On Change In Fair Value Of Limited Liability Investments At Fair Value
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100000 USD
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200000 USD
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16700000 USD
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17300000 USD

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